Jetstar Update: A Pay Increase Is Coming


ASU members at Jetstar will receive pay increases from July. While any increase is welcome, it is important to understand where this increase comes from and what it says about the current state of wages at Jetstar.

From the first full pay period on or after 1 July, Jetstar will be required to increase pay rates where necessary to ensure they meet the new Award (legal minimum) rates determined by the Fair Work Commission (FWC). This increase was fought for by unions, including the ASU, advocating through the FWC's Annual Wage Review process to ensure minimum wages keep pace with rising living costs.
This means:
  • As the Jetstar enterprise agreement rate falls below the new Award rate, your pay will increase.
  • These increases occur automatically and are not dependent on bargaining outcomes (because we achieved the increase at the Fair Work Commission).
  • Jetstar is legally required to apply these increases.

What will the increase look like?
The FWC has awarded a 4.75% increase to Award rates.
However, this does not mean every worker will receive a 4.75% pay increase.
Depending on your classification and current rate of pay:
  • Some workers may receive the full 4.75% where their rates have fallen further behind the new Award minimum.
  • Others may receive smaller increases where their current rates already sit closer to the Award.
We will provide further information once the updated classification rates are published.

How did we get here?
When the current Enterprise Agreement was negotiated, it met the requirements of the FWC, including the “better off overall” test. At the time, Agreement rates sat comfortably above the Award minimums and reflected the economic conditions of that period. Since then, the economic environment has changed significantly. Global instability and sustained inflationary pressure have driven up the cost of living across Australia. At the same time, workers have experienced the legacy of the Joyce-era industrial approach within the Qantas Group, including:
  • Periods of wage suppression, including two-year wage freezes
  • Below-inflation wage outcomes
  • A sustained focus on limiting labour cost growth across the business

Over the life of the Agreement:
  • Award rates have increased each year through the FWC’s Annual Wage Review
  • The gap between Jetstar EA rates and Award minimums has steadily narrowed, with Award increases now lifting or overtaking parts of the Agreement structure
  • Workers have faced rising cost-of-living pressures while wage growth has lagged behind
The cost of living has risen sharply, but Jetstar wages have not kept pace. At the same time, the Qantas Group, including Jetstar, has continued to pursue a wage model centred on 3% annual increases which have not matched cost of living pressure.

What this means for bargaining
This development strengthens workers' position in bargaining.
  • The legal minimum has increased because unions fought for higher Award wages.
  • Workers are receiving a pay increase without giving up conditions or trading away claims.
  • The pressure is now on Jetstar to improve its bargaining position.
But bargaining is about achieving more than simply keeping pace with the legal minimum.

Our campaign is focused on:
  • Real wage increases above Award minimums.
  • Recovering ground lost after years of low wage growth.
  • Securing pay outcomes that properly recognise the skills, responsibilities and contributions of Jetstar workers.
Importantly, if a new Agreement is reached before these Award increases take effect, workers must ensure the new Award rates are properly taken into account when assessing any proposed wage outcome.

What happens next?
  • Bargaining continues
  • The Fair Work Commission will publish the updated Award rates.
  • The ASU will review the rates and confirm how they apply to Jetstar classifications.
  • Jetstar will apply any required increases from the first full pay period on or after 1 July if no new Agreement has been reached.
  • If a new Agreement is reached before then, different rates may apply.

We will provide a further update once the new classification rates are available.

Join the ASU to win fair pay
Unions have already delivered Award wage increases through the FWC. Now it’s time to build on that win and secure better outcomes at the bargaining table. If you want better pay and are not yet a member, join our union today.